Monday on the Street, Futures Drifting Lower
Futures are heading lower in premarket action Monday, as investors take a cautious stance in equity markets following a downward target for Chinese economic growth. There are some good data points in the US to help boost market sentiment about domestic economic prospects. Foreign issues, whether it be a collapse of the Chinese housing market , an attack on Iran, or foreign sovereign debt are the key variables in the equation to US economic growth. Futures on the Dow Jones Industrial Average fell 36 points to 12,932. S&P 500 Index futures dropped 4.6 points to 1,364.20, while Nasdaq 100 futures lost 8.75 points to 2,634.75.
Markets are coming off of slight losses Friday, a bullish week which saw multiple tests of 13K. The Dow Jones Industrial Average fell 2.73 points, or 0.02%, to 12,977.57, with 15 of its 30 components ending lower. The S&P 500 shed 4.46 points, or 0.3%, to 1,369.63. Energy firms were hardest hit among the index’s 10 subsectors. The Nasdaq Composite declined 12.78 points, or 0.4%, to 2,976.19.
Currencies and Commodities
The dollar fell 0.38% at 81.5000 yen in the currency market. The euro is gaining 0.26% at $1.3232 while the pound appreciated 0.24% to $1.5872. Gold is down $4.50 to $1,705.30 an ounce, while silver is up 0.25% at $34.61. Light, sweet crude for April delivery is rising 22 cents to $106.92 per barrel on the NYMEX; a 0.21% advance.
ISM Non-Manufacturing Index: A compilation from 60 non-manufacturing sectors across the economic spectrum, with the service sector accounting for 80 percent of economic activity. The index helps gauge strengths and weaknesses within the economy. The composite index for the month of February is expected to have a reading of 56.0; the composite index from the ISM non-manufacturing jumped to 56.8-a strong 3.6 points above December’s upwardly revised 53.0. The reading was above 50 and indicates monthly growth in activity. The range falls as low as 54.5 and north to 58.0…high expectations!
Factory Orders: Represent the dollar level of new orders for both durable and nondurable goods. The consensus is for a 1.6% decrease in the month of January. Thanks to strong durable goods orders, factory orders rose a very healthy 1.1 percent in December on top of November’s even stronger and upwardly revised 2.2 percent jump. The range goes as high as 0.5% and a low of -2.2%.